Victorian minister Danny Pearson faces heat over CBA shares

Senior Andrews government minister Danny Pearson is facing yet more questions about his share portfolio.

Victorian Government Services Minister Danny Pearson. Picture: NCA NewsWire / Luis Ascui

Senior Andrews government minister Danny Pearson is facing yet more questions about his share portfolio, having been the minister responsible for opening at least three new government accounts with the Commonwealth Bank at a time when he held tens of thousands of dollars worth of CBA shares.

On Tuesday, Mr Pearson ­repeatedly stated he had “apologised unreservedly” for an “error of judgment” after The Australian revealed he held Telstra shares while minister responsible for signing off on a $120m telecommunications contract.

However, the Assistant Treasurer and Minister for Government Services evaded multiple attempts to clarify whether he was acknowledging an “error of judgment” relating to the Telstra shares, or referring to his ­apology a fortnight ago in ­response to The Australian ­reporting that he held CBA shares when he ­announced the awarding of a contract to the bank in 2021.

The latest revelations also follow confirmation last month that the government quietly shifted responsibility for an agency chaired by Mr Pearson’s wife, Nicole Marshall, and had been part of the Consumer ­Affairs portfolio since 1998, to the portfolio of Small Business Minister Natalie Suleyman.

The move was made when Mr Pearson was sworn in as Consumer Affairs Minister in December.

The Australian has now confirmed via documents obtained under Freedom of Information, that as Assistant Treasurer Mr Pearson received a departmental briefing on September 16, 2021, regarding “Opening new bank account for Victorian Government Solicitor’s Office”.

Six days later, he was briefed by his department on a “new bank account” for Court Services Victoria.

In response to questions ­received 30 hours earlier, the government late on Tuesday declined to provide on-record comment, but confirmed that while the VGSO and CSV accounts were opened with Westpac, Mr Pearson has approved the opening of three other unnamed government accounts with the Commonwealth Bank.

At the time, Mr Pearson held between $10,000 and $50,000 worth of CBA shares.

Under the Financial Management Act 1994, government ­departments are required to seek the assistant treasurer’s ­approval to open and maintain bank ­accounts.

The current banking and ­financial services state purchasing contract, announced in ­August 2021, requires all government bank accounts and services to be provided by a three-bank panel comprising the Commonwealth, NAB and Westpac.

The government claims the Department of Treasury and ­Finance is not required to disclose to the minister responsible which bank is chosen from the panel.

Outside parliament on Tuesday, in response to questions regarding his Telstra shares, Mr Pearson said he had always ­declared his interests and acted appropriately.

“This contract was overseen by the Department of Treasury and Finance. It was signed off by the probity auditor. I’ve acknowledged an error of judgment. I’ve unreservedly apologised for that error of judgment,” he said.

“I gave undertakings that I would set up a blind trust. That blind trust was executed on Friday afternoon. I’ve provided an updated register of my members’ interests to the Clerk of parliament on Friday afternoon, and I’m happy for that document to be circulated to anyone who’s expressed an interest to look at it.”

Opposition Finance spokeswoman Jess Wilson said ministers “must not be involved in any decisions that may financially benefit companies they are shareholders of.”

“Danny Pearson has been exposed once again with a clear conflict of interest. How many more times will this minister and this government be caught out with another conflict of interest?” Ms Wilson said.

“Victorians deserve better than a minister who is undermining the integrity of government.”